Reliance Industries PLC Essay Example

Ashton and Shaw UK Ltd have experienced declining sales due to low-cost competitors and the loss of long-standing, medium-sized accounts. This report aims to research the global marketplace for their business sector and construct a revised strategic and tactical marketing plan to maintain their remaining key accounts.

The marketing objectives can be categorised into three main categories, which are creating high-quality products and providing unmatched service, achieving wide distribution of the products, and offering them at competitive prices. Specific goals have been set to achieve these objectives including focusing efforts on key accounts (small-sized and large-sized), winning back medium-sized accounts within a year of losing them, and expanding the presence into global target markets.

The objective of the marketing strategy is to penetrate key Asian markets such as Japan, China, and South Korea by constructing production facilities in China and exporting goods worldwide. The primary focus will be on existing customers in the UK, Western Europe, Japan, and South Korea while prioritizing high quality and low labor costs to reduce prices. Kolter's (2003) environmental analysis can yield valuable insights into sales figures, expenses, earnings, market patterns, rivals, channels, and microenvironmental forces that are used for conducting a SWOT analysis.

The motor industry is dominated by the US and Canada, Western Europe, and Japan, according to Keynotes (2002), which together account for about 70% of the world's motor vehicles. These leading producers have shared their knowledge and manufacturing techniques with countries lacking an indigenous motor industry. This has led to large-scale investment and parts manufacturing by subsidiaries of their top suppliers. Today, most advanced countries in central and South America, central and Eastern Europe, the Middle and Far

East, South Africa, and Australia have motor manufacturing plants. Despite high levels of domestic production, there is still active global trade in cars and commercial vehicles. Automotive manufacturing is a slow growth industry in the UK with limited domestic opportunities even if there were little competition from overseas suppliers.

In reality, competition for auto parts is intense, as buyers were already sourcing large volumes from overseas suppliers prior to their plans to increase business with component manufacturers in other countries. This competition has been driven by the weak euro/strong pound, which has favored continental European competitors in the UK due to their surplus capacity to meet demand. Additionally, buyers in the replacement and repair markets seek cheaper prices in an already cutthroat industry. However, certain equipment such as batteries, spark plugs, lamp bulbs, windscreen wipers, brake pads, shock absorbers, drive belts and tyres are frequently replaced. These replacements provide a significant source of business for authorized MOT garages due to comprehensive annual vehicle inspections and higher maintenance standards dictated by law.

Despite their reputation for repair work, car owners may also choose to utilize the services of independent garages that offer cost-efficient options and fast-fit chains specializing in specific tasks for fixed prices. The automotive-parts industry is highly competitive and, based on a growth-share matrix, the company is deemed a weak cash cow. According to Kolter (2003), a harvest strategy is suitable for weak cash cows that require increased cash flow in the short term, regardless of long-term consequences.

Typically, harvesting involves cutting back on various expenses such as R&D, plant and sales staff replacements, and advertising. Meanwhile, GKN PLC, according to their website http://www.gknplc.com, is mainly dedicated

to providing precise components to the automotive and aerospace sectors.

Being the largest auto parts manufacturer in the UK, this company supplies major global manufacturers with components produced in UK and overseas factories. Their product line includes various auto parts like constant-velocity jointed half shafts, chassis frames, and under body members, catering to cars, commercial, all-wheel drive, and military vehicles. Their Automotive Driveline division integrated their operations from Japan and Germany, while a new factory was opened in Japan. Driveline sales for 2003 increased by 10%, but other automotive businesses were less successful. The Unipart Group of Companies can be referred to at http://www.

UGC Ltd acquired its rival, Partco, which made it the second-largest manufacturer of auto parts in the UK. Its primary focus is on manufacturing, selling, and distributing automotive parts. Keynote (2003) observed that the group faced significant challenges due to production disruptions caused by BMW's sale of Rover in 2000, changes at Land Rover after its acquisition by Ford, and a general downturn in production by its other clients. Consequently, the company divested its underperforming assets and terminated several cooperative agreements.

Due to the strong pressure on suppliers to lower the cost of automotive parts, UGC has conducted a comprehensive cost review. Delphi Automotive Systems UK Ltd is a subsidiary of the largest manufacturer of automotive components globally, Delphi Automotive Systems Corporation (US), which was previously owned by General Motors, as stated on http://www.delphiauto.co.uk.

Its products for the automotive sector include chassis systems and various other components.